I) Representation of foreign individuals
A private individual may be represented before the Tax Authority by his/her legal representative, by a lawyer, law firm, European Community jurist, tax expert, certified tax expert, tax consultant, certified tax auditor, accountant, an employee or member of a business association authorized to provide accounting, certified product tax administrator in relation to environmental product tax issues, furthermore certified excise tax administrator based on the Act on Excise Taxes and Special Regulations on the Distribution of Excise Goods, and besides, bookkeeping or tax consulting services providing adequate proof of authorisation or by any other persons of legal age vested with a power of attorney laid down in a public instrument or a private instrument with full probative force. A private entrepreneur may be represented before the Tax Authority by his/her employee of legal age in possession of an adequate proof of authorisation.
II) Representation of foreign companies
Notification of the Tax Authority on permanent authorisation
Any permanent authorisation or appointment for permanent representation before the Tax Authority is deemed to be validly performed only if the taxpayer notifies the Tax Authority thereof using the form (‘EGYKE) prescribed by the State Tax Authority for the purpose of reporting tax and customs issues by electronically, personally or on paper. The Tax Authority sends a notification of the registration of permanent authorisation to the client and the representative. In the absence of such notification, the taxpayer may be represented only on an ad hoc authorisation basis.
In case a permanent authorised representative on the basis of authorisation by the authorised person is allowed to engage in customs issues, the following roles may be indicated on the data sheet EGYKE:
31 = indirect customs representative
32 = direct customs representative
33 = other person of major age
35 = direct and at the same time indirect customs representative or customs agency
37= direct and indirect customs law representative and product tax administrator
97 = customs law representative established in another Member State
In the case of the last code (35) it is also possible to make notifications even if the permanent authorised representative, commissioned representative in customs issues is not a natural person, but for instance a company dealing in customs issues.
Notification to the Tax Authority on the appointment of a financial representative
The financial representative notifies the Tax and Customs Authority (code number 16 shall be used on the EGYKE datasheet) within 15 days of entering into or terminating its agency relationship with a foreign company, also providing the foreign company’s particulars and the number of the bank account opened in Hungary on behalf of the foreign company for tax-related transactions. Only if data sheet ‘T201 is used for notification does the Tax and Customs Authority register the foreign company and its financial representative and provides the foreign company with a tax number. Form ‘T201 is to be used to declare changes concerning the financial representative.
The financial representative may be a limited liability company (also by shares) with a subscribed capital of at least HUF 50 million or bank guarantees for the same amount and with no outstanding tax debts towards the Tax Authority. The financial representative provides proof of compliance with these requirements simultaneously with the notification of the Tax Authority on its acceptance of agency and annually during the course of the mandated duration.
Authorisation of a tax expert, a tax consultant and a European Community jurist
In the event a person with a tax expert, tax consultant, certified tax expert or a European Community jurist qualification is granted authorisation, it should be noted that such persons may exercise their right of representation as laid down in the relevant applicable statutory regulations only after having been registered in Hungary.